Under GST, TN’s revenue goes up by 14%

Tamil Nadu's fear of losing revenue because of the implementation of GST may be completely misplaced, going by the revenue accrued to the state government in the first month of the GST regime.

The state GST or SGST has increased Tamil Nadu's revenue by 14%, compared to the revenue earned through value added tax in the past. But the commercial taxes department is not ready to jump into conclusion that early.

Commercial tax assessees are yet to start filing returns and the Centre has extended the date of filing returns till October. "We have achieved 14% increase in revenue compared to VAT, since the new tax regime was introduced on July 1. The increase can be assessed properly only after we get the returns from the assessees. The SGST may also include inter-state sales, which comes under IGST. This will have to be deducted," said a senior official of commercial taxes department.

Tamil Nadu, being a manufacturing state, had opposed implementation of GST as it feared revenue loss as the present indirect tax regime is a consumption-oriented tax. "With the implementation of GST, the tax base has increased enormously. Almost all goods and services come under either of the four tax slabs. There is tax on several goods, which hitherto escaped the tax net," said the official.

Tamil Nadu, despite being a manufacturing state, is also a big consumption state as nearly 48% of its population lives in urban areas. "We will have a clear picture by end of next month as to where our revenue stands on account of GST. In VAT, we used to see a growth of 8% per annum and in the last few years, we did not meet the budget target. But in GST the Centre had forecast an increase of 14% and we have achieved that. Anything above that is bonus," he said.

The number of complaints by consumers and traders on implementation of GST has reduced. "Initially we used to get calls from consumers in hotels as the rate of idli must be different under GST compared to VAT. But under GST, the seller deducts tax paid on inputs like dhal, rice etc and then charges the consumer. But, slowly, traders and consumers have settled down with the new tax regime and calls are less or nil," the official said.

Meanwhile, the department has set up a screening committee to check profiteering under GST. "Profiteering arises when a trader charges a higher rate of tax instead of a lower slab. The screening committee checks cases of profiteering by traders and reports to the anti-profiteering committee. The screening committee has one officer from the state commercial tax department and one from the Central GST office," the official said.


Source :  The Times of India


Popular posts from this blog

Compliance Manual for F.Y.2019-20 (A.Y. 2020-21)